Cloudflare Finishes 2024 Strong
Generated by AI AgentWesley Park
Friday, Feb 7, 2025 11:20 am ET3min read
NET--
Cloudflare, the leading connectivity cloud company, has announced its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company reported a strong end to the year, with record growth in its largest customers and impressive financial performance.
Fourth Quarter 2024 Financial Highlights
Revenue: Total revenue of $459.9 million, representing an increase of 27% year-over-year.
Gross Profit: GAAP gross profit was $351.3 million, or 76.4% gross margin, compared to $279.2 million, or 77.0%, in the fourth quarter of 2023. Non-GAAP gross profit was $356.8 million, or 77.6% gross margin, compared to $286.0 million, or 78.9%, in the fourth quarter of 2023.
Operating Income (Loss): GAAP loss from operations was $34.7 million, or 7.5% of total revenue, compared to $42.8 million, or 11.8% of total revenue, in the fourth quarter of 2023. Non-GAAP income from operations was $67.2 million, or 14.6% of total revenue, compared to $39.8 million, or 11.0% of total revenue, in the fourth quarter of 2023.
Net Income (Loss): GAAP net loss was $12.8 million, compared to $27.9 million in the fourth quarter of 2023. GAAP net loss per basic and diluted share was $0.04 compared to $0.08 in the fourth quarter of 2023. Non-GAAP net income was $68.8 million, compared to $53.5 million in the fourth quarter of 2023. Non-GAAP net income per diluted share was $0.19, compared to $0.15 in the fourth quarter of 2023.
Cash Flow: Net cash flow from operating activities was $127.3 million, compared to $85.4 million for the fourth quarter of 2023. Free cash flow was $47.8 million, or 10% of total revenue, compared to $50.7 million, or 14% of total revenue, in the fourth quarter of 2023.
Cash, cash equivalents, and available-for-sale securities were $1,855.9 million as of December 31, 2024.
Full Year 2024 Financial Highlights
Revenue: Total revenue of $1,669.6 million, representing an increase of 29% year-over-year.
Gross Profit: GAAP gross profit was $1,290.9 million, or 77.3% gross margin, compared to $989.7 million, or 76.3%, in fiscal 2023. Non-GAAP gross profit was $1,313.6 million, or 78.7% gross margin, compared to $1,015.8 million, or 78.3%, in fiscal 2023.
Operating Income (Loss): GAAP loss from operations was $154.8 million, or 9.3% of total revenue, compared to $185.5 million or 14.3% of total revenue, in fiscal 2023. Non-GAAP income from operations was $230.1 million, or 13.8% of total revenue, compared to $122.0 million, or 9.4% of total revenue, in fiscal 2023.
Net Income (Loss): GAAP net loss was $78.8 million compared to $183.9 million for fiscal 2023. GAAP net loss per basic and diluted share was $0.23, compared to $0.55 for fiscal 2023. Non-GAAP net income was $269.0 million compared to $169.7 million for fiscal 2023. Non-GAAP net income per diluted share was $0.75, compared to $0.49 for fiscal 2023.
Cash Flow: Net cash flow from operating activities was $380.4 million, compared to $254.4 million for fiscal 2023. Free cash flow was $166.9 million, or 10% of total revenue, compared to $119.5 million, or 9% of total revenue, for fiscal 2023.
Cloudflare's customer base has seen significant growth, particularly among high-spending customers. In the fourth quarter of 2024, the number of customers spending more than $1 million with Cloudflare per year grew to 173, representing a 47% increase year-over-year. This growth was driven by the addition of 55 new customers in 2024, with more than half of these new additions coming in during the fourth quarter alone. This indicates that Cloudflare's strategies for customer acquisition and retention have been effective in attracting and retaining high-value customers.
Cloudflare's market share continues to grow, with the company now serving nearly 20% of the top 1000 internet properties. The company's success can be attributed to its innovative products and services, such as its advanced firewalls, content delivery network (CDN) caching, image optimization, and intelligent traffic management. Additionally, Cloudflare's free CDN offering has been a significant driver of customer acquisition and retention.
Looking ahead, Cloudflare has provided an optimistic outlook for the first quarter of 2025, projecting revenue in the range of $468.0 to $469.0 million and non-GAAP net income per share at $0.16. For the full year 2025, the company expects total revenue of $2,090.0 to $2,094.0 million and non-GAAP net income per share of $0.79 to $0.80. These projections indicate that Cloudflare is well-positioned to capture the demand it sees lined up in 2025 and reaccelerate the company's growth.
In conclusion, Cloudflare's strong financial performance in 2024, driven by record growth in its largest customers and an expanding customer base, positions the company for continued success in 2025. With its innovative products and services, effective customer acquisition and retention strategies, and a growing market share, Cloudflare is well-equipped to capture the demand it sees lined up in the coming year and reaccelerate its growth.
Cloudflare, the leading connectivity cloud company, has announced its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company reported a strong end to the year, with record growth in its largest customers and impressive financial performance.
Fourth Quarter 2024 Financial Highlights
Revenue: Total revenue of $459.9 million, representing an increase of 27% year-over-year.
Gross Profit: GAAP gross profit was $351.3 million, or 76.4% gross margin, compared to $279.2 million, or 77.0%, in the fourth quarter of 2023. Non-GAAP gross profit was $356.8 million, or 77.6% gross margin, compared to $286.0 million, or 78.9%, in the fourth quarter of 2023.
Operating Income (Loss): GAAP loss from operations was $34.7 million, or 7.5% of total revenue, compared to $42.8 million, or 11.8% of total revenue, in the fourth quarter of 2023. Non-GAAP income from operations was $67.2 million, or 14.6% of total revenue, compared to $39.8 million, or 11.0% of total revenue, in the fourth quarter of 2023.
Net Income (Loss): GAAP net loss was $12.8 million, compared to $27.9 million in the fourth quarter of 2023. GAAP net loss per basic and diluted share was $0.04 compared to $0.08 in the fourth quarter of 2023. Non-GAAP net income was $68.8 million, compared to $53.5 million in the fourth quarter of 2023. Non-GAAP net income per diluted share was $0.19, compared to $0.15 in the fourth quarter of 2023.
Cash Flow: Net cash flow from operating activities was $127.3 million, compared to $85.4 million for the fourth quarter of 2023. Free cash flow was $47.8 million, or 10% of total revenue, compared to $50.7 million, or 14% of total revenue, in the fourth quarter of 2023.
Cash, cash equivalents, and available-for-sale securities were $1,855.9 million as of December 31, 2024.
Full Year 2024 Financial Highlights
Revenue: Total revenue of $1,669.6 million, representing an increase of 29% year-over-year.
Gross Profit: GAAP gross profit was $1,290.9 million, or 77.3% gross margin, compared to $989.7 million, or 76.3%, in fiscal 2023. Non-GAAP gross profit was $1,313.6 million, or 78.7% gross margin, compared to $1,015.8 million, or 78.3%, in fiscal 2023.
Operating Income (Loss): GAAP loss from operations was $154.8 million, or 9.3% of total revenue, compared to $185.5 million or 14.3% of total revenue, in fiscal 2023. Non-GAAP income from operations was $230.1 million, or 13.8% of total revenue, compared to $122.0 million, or 9.4% of total revenue, in fiscal 2023.
Net Income (Loss): GAAP net loss was $78.8 million compared to $183.9 million for fiscal 2023. GAAP net loss per basic and diluted share was $0.23, compared to $0.55 for fiscal 2023. Non-GAAP net income was $269.0 million compared to $169.7 million for fiscal 2023. Non-GAAP net income per diluted share was $0.75, compared to $0.49 for fiscal 2023.
Cash Flow: Net cash flow from operating activities was $380.4 million, compared to $254.4 million for fiscal 2023. Free cash flow was $166.9 million, or 10% of total revenue, compared to $119.5 million, or 9% of total revenue, for fiscal 2023.
Cloudflare's customer base has seen significant growth, particularly among high-spending customers. In the fourth quarter of 2024, the number of customers spending more than $1 million with Cloudflare per year grew to 173, representing a 47% increase year-over-year. This growth was driven by the addition of 55 new customers in 2024, with more than half of these new additions coming in during the fourth quarter alone. This indicates that Cloudflare's strategies for customer acquisition and retention have been effective in attracting and retaining high-value customers.
Cloudflare's market share continues to grow, with the company now serving nearly 20% of the top 1000 internet properties. The company's success can be attributed to its innovative products and services, such as its advanced firewalls, content delivery network (CDN) caching, image optimization, and intelligent traffic management. Additionally, Cloudflare's free CDN offering has been a significant driver of customer acquisition and retention.
Looking ahead, Cloudflare has provided an optimistic outlook for the first quarter of 2025, projecting revenue in the range of $468.0 to $469.0 million and non-GAAP net income per share at $0.16. For the full year 2025, the company expects total revenue of $2,090.0 to $2,094.0 million and non-GAAP net income per share of $0.79 to $0.80. These projections indicate that Cloudflare is well-positioned to capture the demand it sees lined up in 2025 and reaccelerate the company's growth.
In conclusion, Cloudflare's strong financial performance in 2024, driven by record growth in its largest customers and an expanding customer base, positions the company for continued success in 2025. With its innovative products and services, effective customer acquisition and retention strategies, and a growing market share, Cloudflare is well-equipped to capture the demand it sees lined up in the coming year and reaccelerate its growth.
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